LEP.ASX Ale Property Group

Hi Guys,

Any idea how I should process the changes to my “LEP.ASX Ale Property Group” shares given the buyout by CLW?

2 Likes

Hi, I am also interested in a response to this. Thanks

@Johnsy @Panos I’ve added instructions on how to handle this below:

Mixed consideration (default option)

Under the Transaction terms, LEP Security holders will receive $5.683 per LEP security (Consideration) comprising:

$3.673 cash per LEP security (of which CLW will fund $0.833 per LEP security)
0.408 CLW securities per LEP security.

  1. Enter the total cash amount received by adding a ‘Return of Capital’ trade.

  2. Use the merge function to convert LEP to CLW based on the above ratio.

Mix & Match options

All stocks
1.1546 CLW securities for 100% of their securities

If you select this option, use the merge function to convert LEP to CLW based on the above ratio.

All cash
$5.681 cash per ALE security for 100% of their securities.

If you select this option, add a sell trade with a selling price of $5.681 to close off your position.

1 Like

Hi Jack,

From what I can ascertain from the ALE scheme booklet, the take over by Charter Hall will trigger a CGT event, including the scrip for scrip. The ATO has provided no roll-over relief for scrip for scrip because it doesn’t satisfy certain conditions.

I think how this needs to be entered is by selling the entire holdings of ALE for the cash component PLUS CLW shares X $5.1754 ($5.1754 being the market value on the implementation date being 17 December as advised by Charter Hall). This will then allow you to calculate the CGT implication whether that be a loss or a gain.

The 2nd part would be to then buy the CLW shares that were issued at $5.1754 which will be the base cost of these shares.

Regards,
Justine.

1 Like

Did we get an official share sight response to Justine’s alternative. I remember reading that the merger specifically did not have rollover relief - so using a function that applies rollover relief seems incorrect. So I agree with Justine. Can Share Sight please respond on this asap.

I believe the Share Sight service has a weakness in just not putting an instruction out for each corporate action in simple to follow terms, and instead making people waste time on discussions and incorrect responses. An accounting firm could be engaged to provide the instructions ON SS behalf very quickly. This would significantly add to ShareSights value proposition

That is a great idea Rob. I really hope Sharesight take this on board for serious consideration. It would definitely be a value add for Sharesight!

I don’t think this is the correct way to record this event as it does not reflect the capital gains on the shares. Please clarify. Thanks.

Agreed +1

Hmmm - well I can understand that Sharesight can’t/shouldn’t give Accounting advice, but the advice requested was how to process the transaction in Sharesight!! It seems like the “how to process” info might be based upon some information (not quoted nor sourced) which gives rollover relief in this transaction.

What WOULD be helpful is if those at Sharesight were able to clarify whether they mis-spoke, or, conversely, have information that is not presently to hand for a number of Sharesight members (as evidenced by responses).

If SS is aware of rollover relief in this transaction (as stated uncategorically in your response above), please reference a source. If SS is aware that there is NO rollover relief, please amend this thread. Otherwise this thread continues to promulgate an ongoing credibility hit on Sharesight the company!

Currently diving into the scheme booklet and reviewing the mentioned instructions. I’ll get back here shortly with a definitive answer for how to enter this in Sharesight :+1: